Perform rejects £700m takeover bid
London-listed sports data firm believes bid tabled by current shareholder Access Industries "undervalues" Perform
Sports data firm Perform Group is set to reject a potential takeover from minority shareholder Access Industries after the investment group’s bid was deemed to have “undervalued” the company.
On Monday it was announced that Access Industries had tabled an offer which valued Perform at £701.6m, however, the Perform board has today urged shareholders to reject the final cash offer once it is officially lodged.
“The Board values Access Industries as a long-term shareholder and supporter of the company but has concluded that the final cash offer undervalues the company and its prospects,” Perform said in a statement.
Access Industries, which already owns 42.5% of the London-listed company, offered 260 pence for each of the remaining shares but directors of Perform will refuse to sell their aggregated 10.8% stake, which will leave Access Industries short of the minimum 90% required to complete a compulsory takeover.
According to the Companies Act 2006, when a bidder obtains 90% or more of the shares in its target company it can require the remaining shareholders to sell their shares.
Perform is currently being advised by independent financial advisory company Rothschild on the final offer while Access Industries has sought advice from Credit Suisse.
Perform Group’s share price was 258.10p on the London Stock Exchange at the time of writing, up from 203.8p at close of trading last Friday.